Family Life

[medicarebenefitsdirect]

Mutual never met a rate increase it didn't like. ​

I've seen the 35-45% Mutual rate increases in one year. I've seen Mutual raise rates twice in a year. Rates are based upon loss ratios. I agree that we have plenty of low ball plans that come and go. I write Mutual and know that their rates will go up. Their paying claims!

While that may be true on some of their old books that were actually Mutual of Omaha blocks, the new United World books and United of Omaha books should not increase as much. The United World books have increased but not as bad as a Provident American which increased almost 60% in 24 months. They make a lot of costs up by not paying a 23% commission and 30 % FMO commission. The top contract with United of Omaha is now 20%. There are not many people who have those. You are actually lucky if you have an 18% contact with Mutual. Sure, everyone pays claims but their business practices, as of late, have seemed to put them at the top of the food chain.

 

[Russ]

While that may be true on some of their old books that were actually Mutual of Omaha blocks, the new United World books and United of Omaha books should not increase as much. The United World books have increased but not as bad as a Provident American which increased almost 60% in 24 months. They make a lot of costs up by not paying a 23% commission and 30 % FMO commission. The top contract with United of Omaha is now 20%. There are not many people who have those. You are actually lucky if you have an 18% contact with Mutual. Sure, everyone pays claims but their business practices, as of late, have seemed to put them at the top of the food chain.

Then why was a marketer on this forum recently trying to get me to sign on with him, stating that he could get me 23% with M of O?

 

[medicarebenefitsdirect]

Then why was a marketer on this forum recently trying to get me to sign on with him, stating that he could get me 23% with M of O?

Because he was not telling you the truth. Mutual systematically cut commissions in all states over the last few years. The State I am in, SC, was one of the last states to lose the higher commissions. We used to get 22%. If you find me a Mutual contract for 23% I will personally write you a check for a 3% commission off of everything I sell! And our company does a lot of business. I can tell you for a fact that 23% does not happen with United of Omaha. Ohio was one of the last states as well that comps were cut in.

 

[Russ]

Because he was not telling you the truth. Mutual systematically cut commissions in all states over the last few years. The State I am in, SC, was one of the last states to lose the higher commissions. We used to get 22%. If you find me a Mutual contract for 23% I will personally write you a check for a 3% commission off of everything I sell! And our company does a lot of business. I can tell you for a fact that 23% does not happen with United of Omaha. Ohio was one of the last states as well that comps were cut in.

No wonder the commission schedule he showed me was dated August 1st, 2004. In 2005 they cut commissions here in Florida too.

 

[Cenla Agent]

In my experience, companies like this are trying to buy the block of business. In two years they will raise rates,oh, 35-45%. Even though Mutual pays a lower commission it tends to stay on the books longer. They are discounting business on the front-end, only to really load it up when the increases come. Always a safe bet to go with Mutual.

I don't think there's any doubt that they are trying to buy the block of business, just like others have before. But there's no doubt that's what MOO is doing with introducing supps under different companies every three or four years as well. Add to that the fact that they accept insulin dependent diabetics under certain conditions. Mutual's numbers may work out a little better than smaller companies like this, UCT or Admiral, but it looks to me like they're playing what amounts to the same game, only a little differently. It is true that their commissions are quite a bit lower than the aforementioned companies, something they did when United World was rolled out. Maybe that will end up making a difference. (The avg. is probably 15-17 depending on which state, compared to the low to mid 20's with the others.) I agree that it's probably a little safer bet to go with Mutual, but how much safer is it? It does have the advantage of name recognition and an A rating, which does help with some clients, although in the supp market that's not nearly as important as it is with life, etc. Mutual also doesn't try to get you to pledge your first born son in the contract if you ever replace one of their policies either.

There are other companies that in some areas at least may be a little more stable with the increases, but when these are at 100 per month or below and the others are 140 and up, it's often a hard sell unless you want to go with something like a D or G instead, like Frank does, or if there is maybe a company selling a issue age policy that isn't sky high.

 

[toc3]

Because he was not telling you the truth. Mutual systematically cut commissions in all states over the last few years. The State I am in, SC, was one of the last states to lose the higher commissions. We used to get 22%. If you find me a Mutual contract for 23% I will personally write you a check for a 3% commission off of everything I sell! And our company does a lot of business. I can tell you for a fact that 23% does not happen with United of Omaha. Ohio was one of the last states as well that comps were cut in.

United of Omaha pays 25% 1st year in Arkansas. At least this is what I have through my FMO.

 

[Russ]

United of Omaha pays 25% 1st year in Arkansas. At least this is what I have through my FMO.

What is it after year 1?

 

[toc3]

What is it after year 1?

Mine is only 8% but that is because my FMO produces leads for me. They get their lead cost back through my renewals. I had to go that way since I did not have the means to market myself. I am not sure what the renewals are for the agents that don't use their lead program.

 

[Russ]

Mine is only 8% but that is because my FMO produces leads for me. They get their lead cost back through my renewals. I had to go that way since I did not have the means to market myself. I am not sure what the renewals are for the agents that don't use their lead program.

Okay. Mine is now at 16% years 1-6, 8.5-9% years 7-10.

 

[toc3]

Okay. Mine is now at 16% years 1-6, 8.5-9% years 7-10.

I don't think that is too bad. I would be happy with that. I just needed the lead program which is why my renewals are not as good.